Socfin KCD & Coviphama

Having been active in Southeast Asia at the beginning of the last century, the Socfin Group recommenced operations in the early 2000's in Cambodia, a country where rubber cultivation remains a firmly established tradition today.

The creation of the Chup plantation, which was to become one of the largest in the world by the 1960s, dates back to 1922. In the late 1970s, all Cambodian plantations were nationalised under the Khmer Rouge. Subsequently, Cambodia’s involvement in the Vietnam War had a devastating effect on the country’s plantations and agriculture in general. Large companies operating in the agricultural sector such as Terres Rouges and the Socfin Group lost all their concessions in Indochina.

In the early 2000s, the Socfin Group, which was keen to start diversifying geographically in Asia, recommenced operations in Cambodia. Its strategy was to implement a project of partnerships with smallholders.

A period of intense prospecting began, leading in 2007 to the creation of Socfin KCD and the obtaining of a first concession in the Mondulkiri region, and then of a second in 2010. A new concession, Coviphama, has been purchased in 2013. Today, the plantations are developing fast, and a modern rubber factory will be launched in 2018.

Since its creation, Socfin KCD has attached particular importance to the life of the local people, the Phnongs. In order to protect the local culture and customs, Socfin has defined conservation areas for cemeteries, sacred forests and so on within the plantation.
The Group is also working to develop social facilities and industrial infrastructure in the plantation.

Ecological

Aware of their environmental responsibility, Socfin KCD and Coviphama have made protecting the living environment a top priority. For instance, they have defined natural corridors around the main rivers that cross the plantation in order to preserve pockets of biodiversity there. In addition, a waste management policy has been implemented and the application of modern agricultural practices has minimised the environmental impact of the plantation.

Local Development

In their efforts to develop their activities in these less developed – and largely cut off – regions, Socfin KCD and Coviphama have faced challenges in areas such as infrastructure, employment and training.

However, the construction of roads, bridges and other infrastructure has greatly improved the region’s accessibility and encouraged the building of numerous homes and shops, which also generates employment. Other jobs have also been created as the plantation has developed. The plantation’s managers have also focused on training, particularly in the administrative, agricultural, technical, social and medical fields.

Finally, in line with its vision of sustainable development, the Socfin Group has based its return to Cambodia on a project to establish village plantations and support smallholders. The programme, called ‘Family Rubber Plantations’ (PHF), is designed to ensure a steady long-term income for the local people (Phnongs). Around a hundred families have received a plot of rubber trees that had already been planted, and are currently receiving support with the development of their plantation: financial support and training in new agricultural techniques. In this way, the Socfin Group is combining two of its main ambitions.

Social

Still in the initial stage of development, Socfin’s plantations in Cambodia are paying special attention to the integration of local people in their project.

The character of the plantations is gradually changing, as modern villages emerge. Services such as new housing, clean water, electricity and schooling are intended to improve the lives of these formerly isolated populations.

Socfin KCD and Coviphama firmly believe that the development of local communities must involve the education of young people. Pending the completion of the construction programme, the schools neighbouring the plantation have therefore been renovated, access to drinking water and electricity has been ensured and financial support has been provided to schools in need, covering the distribution of teaching materials, equipment, etc.

Health, which is another major factor in the development of isolated populations, has not been neglected either. A medical centre has been set up under the responsibility of a team of trained personnel, and first aid stations are being built in every village on the plantation in order to provide first aid to the population.